Dreams... You have them.
Five venture capitalists want to fund them. But you're
going to have to prove to them that you are worth their
time AND money. Time to reopen the Tank...
OWNER: Michael & Babz Barnett;
OFFER: $300K for a 10% stake
Their creation is a magical place where
different kids can bond and learn together. It's a children's enrichment
center specializing in gym, art, and music. There are currently 10
Romp'n'Rolls from Pennsylvania to Puerto Rico, and they've taken in $4
million in revenue over five years. Their goal: a Romp'n'Roll in every
community around the world.
Their tagline: "Nurture the genius,
unleash the goofball." Funny, that's GSNN's tagline as well.
Kevin H want to know how different this
is from Gymboree. Babz: "Gymboree, the cassette player. Romp'n'Roll...
the MP3 player." Last year, they took in $1.2 million. Babz also says
that "mommy marketing" is more powerful than print and TV, so much that
1 percent is only spent on marketing. Kevin O is impressed, but he's not
impressed with the business model. He's out. Same with Daymond. This
isn't him. Harrington's out as well. Barbara can't bear to see another
failure (she used to take her 3-year-old to Gymboree in Manhattan), so
she's out. Robert's still in, but all Babz's energies are concentrated
on the other Sharks. Are they going to stay focused enough to maintain
this business to earn the Sharks' backing?
Robert's in, but he wants 51%. The
Barnetts talk it over, saying that they will never give up more than
50%. Meanwhile, O'Leary offers to go in with him for control, saying
that he's knowledgeable of the education business. The Barnetts counter
If it's anything I've learned from
watching this show... You never argue with the people who have money
and/or expertise. The Sharks have both. And as of right now... the
Barnetts have NONE.
REVISIT: Stress Free
Lori Lite made a $50,000
deal with Barbara back in season 1. Some time later,
we're at a Borders where she's doing a signing and a
reading. Lite's titles have been picked up by the chain,
and will be in their stores nationwide.
OWNER: Marix Stone & Dr. Nancy Tanchel,
PRODUCT: Hells Bells Helmets
OFFER: $500K for a 20% stake
Stone has made a legally-mandated safety
helmet and made it stronger, safer, and actually pretty darn appealing
with three-dimensional graphics. And... that's as far as he goes in his
pitch. Only millions of people watching, take your time. They are
bringing in $300,000 for the helmets this year, but they want to get
into the mass production. They own the patent for the 3D helmets. This
is an unbelievable assets.
Profit margin is over 50%.
Harrington is out. He can't write a check
for half a mill on potential. Same with O'Leary. Barbara says that this
isn't her cup of tea. Daymond says that they have $300,000 in sales...
yet their product is valued at $2.5 million. That's crazy talk. BUT
Daymond offers the money for 50/50 for the license. Robert was going to
offer the money for 75%, so he's out.
ACCEPTED: Daymond's offer of $500K for a
OWNER: Alfonzo Dowe, Sr.; New Jersey
PRODUCT: The Twister
OFFER: $80K for a 40% stake
The Twister is a portable golf ball
cleaner. He demonstrates it in front of the panel, and it works
perfectly. He's sold a couple thou worth of them. But he needs business
know-how... He is a police officer who's marketing this for the loved
ones in a golfer's life. Kevin H... is THE golfer. So he's out. Barbara
says they'll buy a lot of them, but she doesn't like golf, so she's out.
Robert gets out as well. The rest of the Sharks follow suit.
But Robert wants to buy one anyway.
OWNER: Dorene Humason; Folsom, CA
PRODUCT: The Chef in Black
OFFER: $50K for a 10% stake
Dorene has spent her years as a buyer and
a food representative. She has created what she believes is a great
product for the cook in our lives. The product itself... a Chinese salad
dressing and seasoning mix packet. It's in 1300 stores already.
Robert says that there are millions of
packets just like hers. It will all come down to market share. Her sales
have come up $78,000 so far, but she's had a bit of a problem with the
packaging. The first packaging was offensive... it had a Japanese
The focus is on the company, but the
product is the selling bit. That confuses the Sharks, so they're going
to bow out one at a time, leaving Barbara, who's scared to death of the
food category. Barbara wants 40% of her business, but Dorene has to
commit to the dry salad dressing first.
Dorene counters with 35%. DEAL.
ACCEPTED: Dorene's counteroffer to
Barbara for $50K for a 35% stake.
OWNER: Andy Sperry; Franklin, TN
OFFER: $150K for a 20% stake
Andy's product is like "Netflix for
anyone who's ever used a computer printer." What happens is that
customers send Inkflip empty cartridges, they fill them and send them
back. That way, there's always a spare. It's basically Cartridge World.
Inkflip has $10,000 in revenue over its six-month lifespan.
There's one killer question: what is the
cost of acquiring one customer. Andy has absolutely no idea. The Sharks
are out on the basis of that.
So in the end, we've learned that if
you're going to see the Sharks, you better have done your homework.
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